China says court ruling belongs in bin

Foreign Minister Julie Bishop has warned China's reputation is on the line as it dismisses an international court ruling on the South China Sea as a farce that belongs in the bin.

China has vowed to ignore the ruling by the Permanent Court of Arbitration in The Hague, which unanimously ruled in favour of the Philippines, declaring China had no historical title over the South China Sea.

Its vice-foreign minister Liu Zhenmin says the decision is null and void and will not be enforced.

"So just dump it in the garbage or put it on the shelf," he told reporters in Beijing on Wednesday.

He also issued a stern warning to other countries seeking to enforce the court's ruling, insisting they would be committing "new illegal acts".

"The Chinese government will take necessary measures to stop them."

The court ruled that the 1982 UN Convention on the Law of the Sea superseded China's 69-year-old claim to roughly 85 per cent of the disputed territory.

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China has released a white paper calling for the dispute to be settled through negotiations with the Philippines.

Ms Bishop has called on all parties to respect the ruling, describing it as final and legally binding.

She's warned China's reputation would suffer if it ignored the decision, insisting friendly relations with the international community were crucial to its rise.

"To ignore it would be a serious international transgression," she told ABC radio.

"There would be strong reputational costs."

She expects to speak with her counterparts in China and the Philippines in coming days.

Ms Bishop insists Australian ships and aircraft will continue to exercise freedom of navigation and overflight rights but refused to comment on specific details of activities.

But Labor defence spokesman Stephen Conroy accused the Turnbull government of "pretending" to exercise freedom of navigation in the region.

"I've questioned all our defence officials at Senate estimates and they've made it clear they are not authorised to engage in freedom of navigation exercises in the South China Sea," he told ABC radio.

Given China was rejecting Tuesday night's ruling, it was time Australia demonstrated support for international law by conducting freedom of navigation exercises in the disputed region, Senator Conroy said.

He dismissed concerns the action could inflame tensions, insisting China's actions had become more aggressive and "bullying" in recent weeks.

Opposition Leader Bill Shorten agreed Australia's defence force should be authorised to conduct freedom of navigation exercises, but said operational details should be left to the military.

Griffith University political scientist Andrew O'Neil says Australia must emphasise the importance of freedom of navigation in the maritime zone.

"Remaining neutral is not a realistic option for Australia," Prof O'Neil said.

"(It) would be tantamount to accommodating China's attempt to effectively control the South China Sea through its ongoing military activities."